In September 2025, the Australian Government announced a A$1.1 billion investment in supporting the future Australian production of low carbon liquid fuels (LCLF). The new ten-year Cleaner Fuels Program aims to stimulate private investment in Australian onshore production of LCLFs, such as renewable diesel and sustainable aviation fuel, with first production estimated by 2029.
LCLFs are produced from feedstocks such as canola, sorghum, sugar and waste. With its advanced farming practices and access to cheap and reliable renewable energy, Australia is well positioned to produce LCLFs that jets, ships, construction machines and heavy trucks need to reach net zero. The Clean Energy Funding Corporation predicts that the production of LCLF could be a A$36 billion market opportunity for Australia.
The Government has now released a Policy Design and Engagement Paper for its Cleaner Fuels Program which is open for submissions until 19 December 2025. The Program is expected to be launched and applications open in mid-202